RiteAssetz Lending Guides
The Secret to Getting 90% Home Loan Funding in India (2025)
Is 90% home loan funding a myth or reality in 2025? This guide reveals the secrets, including the role of property type, your profile, and lender choice in securing maximum funding for your dream home in India.
Unlocking Maximum Funding: The 90% Home Loan Quest
For many aspiring homeowners, the down payment is the biggest hurdle. The idea of getting 90% of the property value as a loan seems like a dream. While it's not standard for all loans, it is achievable under specific conditions set by the RBI. Let's uncover the path to securing maximum funding.
The RBI Mandate: Understanding LTV Ratios
The Loan-to-Value (LTV) ratio is the percentage of the property's value a bank can finance. The RBI has set clear limits:
- For loans up to ₹30 lakh: LTV can be up to 90%.
- For loans between ₹30 lakh and ₹75 lakh: LTV is capped at 80%.
- For loans above ₹75 lakh: LTV is capped at 75%.
So, 90% funding is primarily available for properties in the affordable housing segment.
Key Factors to Qualify for 90% Funding
1. Your Credit Profile is King:
To be considered for maximum LTV, you need an impeccable credit profile. This means a CIBIL score of 780+, a stable job with a reputable employer, and a low debt-to-income ratio.
2. Property Type Matters:
Lenders are more likely to offer 90% funding for new, under-construction properties from Grade-A developers with whom they have a tie-up. Resale properties might be subject to more stringent valuation and lower LTVs.
3. Lender's Internal Policies:
While RBI sets the maximum limit, the final LTV is at the lender's discretion. PSU banks are often more likely to offer 90% LTV on eligible loans compared to some private lenders.
A Story: Priya's Path to 90% Funding
Priya, a 28-year-old software engineer in Pune, wanted to buy her first home, priced at ₹35 lakh. She only had ₹4 lakh for a down payment. Her application for a ₹31.5 lakh loan (90%) was initially rejected. A Riteassetz advisor analyzed her profile: her CIBIL was 740. We advised her to first clear a small personal loan. Within 3 months, her score jumped to 790. We then helped her apply to a PSU bank with a tie-up to the project she chose. Her loan was approved at 90% LTV. A small strategic step made all the difference.
Want to Maximize Your Loan Amount?
Getting 90% funding requires a perfect application strategy. Let our experts assess your profile and guide you to the right lender to maximize your eligibility.